CHAPTER 24
Execution, Broker and Costs
Same setup, two brokers, two different results. The reason is spread, commission, slippage and order type. This chapter is about the machinery.
24.1Order Types
| Order | Where to use | Caution |
|---|---|---|
Market | After the trigger candle closes | Spread plus slippage |
Limit | FVG, OB or CE entry | Cancel if unfilled |
Stop | Breakout continuation | Sweeps trigger it |
Stop-limit | Better price after a break | No fill in fast moves |
OCO bracket | Entry, stop and target together | Always use it |
24.2What A Trade Actually Costs
| Cost | Typical value | Impact |
|---|---|---|
Spread | 0.5-1.5 pips on EURUSD | The biggest enemy of scalps |
Commission | $3-7 per lot round turn | Eats 5-10 percent of your R |
Slippage | 2-5 pips at news | Pushes the stop further away |
Swap | Daily, both directions | Shrinks R on overnight trades |
The maths: on a 20-pip stop, 2.2 pips of cost is 11 percent of the stop, so a 1:2 trade is really 1:1.78. On an 8-pip scalp stop the same cost is 27 percent - an edge is almost impossible there.
24.3Choosing A Broker
| What to look for | Why |
|---|---|
Regulation | Client fund protection and dispute process |
Execution model | ECN or STP versus B-book |
Spread and commission | Compare total cost, not just spread |
Leverage limits | Follow your jurisdiction |
Withdrawal time | Slower than 24 hours is a warning |
Fill speed | Watch for patterns of stop hunting |
24.4Prop Firms: The Rules Are The Strategy
| Rule | How to comply |
|---|---|
5 percent daily drawdown | Never risk more than 1 percent a day |
10 percent overall drawdown | Halve the size after three losses |
Consistency rule | No day above 30 percent of total profit |
News restriction | Close 30 minutes before flagged news |
Minimum trading days | One trade a day, even small |
Keeping a funded account is harder than passing it: you pass aggressively and must then defend. Risk 0.25 percent in the first month.
24.5Platform And Alerts
- Save three layouts: daily/4H, 1H/15m, 5m/1m.
- Set a price alert at every zone instead of staring at the screen.
- One alert at the session open, two at the Asian range edges.
- Check lot, stop and TP three times before clicking.
- Screenshot before and after entry with one shortcut.
24.6Common Execution Errors
| Mistake | Consequence | Fix |
|---|---|---|
Wrong lot size | Ten times the risk | Calculator and a second look |
Entry without a stop | One trade can end the account | Bracket orders |
Double click | Two positions | Check the positions tab |
Stale limit order | The setup is gone | Cancel everything at session end |
Trading on a phone | Slippage and mistaps | Desktop only |
"Your edge is small. Costs, errors and emotion are what eat it."
Educational material only · not financial advice.